Long-run total cost function for firm producing skateboard
Course:- Business Economics
Reference No.:- EM13891927

Assignment Help
Assignment Help >> Business Economics

The long-run total cost function for a firm producing skateboards is

TC = q^3 − 30(q^2) + 350q

a. Calculate the average cost function for skateboards. What shape does the graph of this function have?

b. At what level of skateboard output does average cost reach a minimum? What is the average cost at this level of output?

c. Calculate the marginal cost function. What is marginal cost at the output level in part b?

d. Graph the average and marginal cost curves.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Waiting times to receive food after placing an order at the local Subway sandwich shop follow an exponential distribution with a mean of 58 seconds. Calculate the probability
Assume a given country two industries X and Y, and in autarky X is produced by a monopolist (with constant returns to scale). Using a graph, explain the precompetitive and com
If there was an economic drop of 5%, how a short and long run firm supply and demand would be affected and what is the decision a CEO must take. In your response, please consi
You have been presented with the following cost data and asked to fit a statistical cost function. Fit three possible statistical cost functions to the data. Use straight-line
If prices are rising and a company’s inventory levels are unchanged, the use of fifo rather than lifo for inventory valuation will tend to result in the current period in a: h
When companies expand into the international arena, they do so either because their home market has matured or because they see real opportunities in the foreign market. Discu
To pay off ?$60,000,000 worth of new construction bonds when they come due in 19 ?years, a water municipality must deposit money into a sinking fund. Payments to the fund will
What is the money multiplier and how does it work? If the reserve ratio is 20%, what is the money multiplier? Does the Fed really "set" the federal funds rate? Is that a tool